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Social Compliance Accounting pp 27–34Cite as

Social Compliance and Corporate Legitimacy Within Supply Chains: A Theoretical Framework

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Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

The discussion in the previous chapter leads to a consideration of a theoretical framework that seeks to understand the managerial motivations underlying the organisation’s social compliance accounting, reporting and auditing practices. In order to gain an in-depth understanding of such motivations for companies sourcing products from suppliers located in developing nations, this chapter discusses legitimacy theory. Legitimacy theory is considered to be the appropriate theory to understand social accounting and reporting practices by many social and environmental accounting researchers.

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Notes

  1. 1.

    Deegan’s (2002) review of prior studies includes, but are not limited to, that of Deegan et al. (2000, 2002), O’Donovan (1999), Brown and Deegan (1998), Walden and Schwartz (1997), Deegan and Rankin (1997), Deegan and Gordon (1996), Patten (1995, 1992), Gray et al. (1995) and Guthrie and Parker (1989).

  2. 2.

    The social contract is a theoretical construct considered to represent the multitude of explicit and implicit expectations that society has about how an organisation should conduct its operations (Donaldson 1982).

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Authors and Affiliations

  1. School of Accountancy, Queensland University of Technology, Brisbane, Queensland, Australia

    Muhammad Azizul Islam

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  1. Muhammad Azizul Islam
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Islam, M.A. (2015). Social Compliance and Corporate Legitimacy Within Supply Chains: A Theoretical Framework. In: Social Compliance Accounting. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-09997-2_4

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